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4 0 1 B A R T H S T | M I D L A N D , M I

Dow Chemical(TENANT)

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EXECUTIVE SUMMARY

FINANCIAL OVERVIEW

AREA OVERVIEW

TENANT OVERVIEW

KYLE MATTHEWSBROKER OF RECORDLIC # 6505399495 (MI )

BROKER OF RECORD

CONTENTS

LISTED BYTYLER GROTHAssociate

Tyler.Groth@matthews.comDIR (310) 844-9370MOB (269) 326-2493LIC # 6501390929 (MI )

CALVIN SHORTSVP & Senior Director

Calvin.Short@matthews.comDIR (949) 432-4506MOB (310) 567-3525LIC # 01927216 (CA)

Dow Chemical(TENANT)

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E X E C U T I V EO V E R V I E W

• Strategic Location - This warehouse plays a key role in Dow's business, located across the street from their 2000+ acre Michigan Manufacturing Campus

• Long-Term Tenant - Dow has occupied the subject property for more than 33 years

• Significant Capital Improvements - Current ownership has invested more than $350,000 into the property since 2010

• Upside Potential - Vacant connected office suite provides an opportunity to further increase cash flow.

• Below Replacement Cost - At $40/SF, the purchase price represents the opportunity to acquire this property below current replacement cost

• Current rent is in line with the market, providing additional stability to the investment

• Investment Credit Tenant - DowDuPont, Dow Chemical’s parent company, is the largest chemical producer in the world, carrying a BBB credit rating and a market cap exceeding $165B

• Commitment to the Market - Dow has been headquartered in Midland since its inception in 1897 and recently completed construction on a brand new 184,000 SF building within their Corporate Center, located less than 1mi from the Subject Property

• Continued Investment - In July, Dow announced the groundbreaking of a state-of-the-art $100M Innovation Center in Midland

• Dow #62 on Fortune 500 with 56,000 employees

• Strong Demographics - Average Household Income within a 5mi radius is nearly $90,000

• Strong Industrial Market - Neighboring tenants include Consumers Energy, Xalt Energy, Case Systems Inc.

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F I N A N C I A LO V E R V I E W

ANNUALIZED OPERATING DATA

Annual Rent

Rent/SF Expenses* NOI Cap Rate

8/1/2017 - 7/31/2018 $304,815 $3.67 $63,773 $241,042 7.25%

8/1/2018 - 7/31/2019 $310,912 $3.75 $63,773 $247,138 7.43%

8/1/2019 - 7/31/2020 $310,912 $3.75 $63,773 $247,138 7.43%

8/1/2020 - 7/31/2021 $317,130 $3.82 $63,773 $253,356 7.62%

8/1/2021 - 7/31/2022 $317,130 $3.82 $63,773 $253,356 7.62%

Option 1 FMV FMV

Option 2 FMV FMV

EXECUTIVE SUMMARY

Address401 Barth St,

Midland, MI 48640

Year Built /Renovated 1965/1979

GLA ± 83,000 SF

Lot Size ± 4.45 Acres

TENANT SUMMARY

Tenant Trade Name Dow Chemical

Type of Ownership Fee Simple

Lease Type Modified Gross

Roof & Structure Owner Responsible

Original Lease Term 5 years

Rent Commencement Date 8/1/2017

Lease Expiration Date 7/31/2022

Term Remaining 4.50 years

Increases 2% in Year 2 & Year 4

Options Two, 5-Year Options

FINANCIAL OVERVIEW

LIST PRICE

$3,325,000

CAP RATE

7.25%

TERM REMAINING

± 4.50 YEARS

*Expenses = RE Taxes ($50,393) + Insurance ($8,484) + Operating Expenses ($4,897)

T E N A N To v e r v i e w

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Dow Chemical is an American multinational chemical corporation. They manufacture plastics, chemicals, and agriculture products. Since 2017, it is the second-largest chemical manufacturer in the world by revenue. With a presence in over 160 countries, Dow employs 54,000 people worldwide.

Known as the “chemical companies’ chemical company,” most of their sales are to other smaller industries. Dow has seven different major operating segments, with a wide variety of products made by each one.

The company also works on some of the world’s most challenging problems including the need for fresh food, safer and more sustainable transportation, clean water, and so much more. For over 120 years, Dow Chemical has transformed from a science start-up to an innovation powerhouse.

DOW CHEMICALH E A D Q U A R T E R S M I D L A N D , M I C H I G A N

R E V E N U E $ 4 8 B

# O F E M P L O Y E E S ± 5 4 , 0 0 0 W O R L D W I D E

Y E A R F O U N D E D 1 8 9 7

C R E D I T R A T I N G ( B B B )

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Oceanside Blvd ± 31,792

Property Address 401 Barth St

Midland, MI 48640

Assessor’s Parcel Number 14-22-80-356

Site DescriptionNumber of Stories One

Year Built/Renovated 1965/1979

GLA ± 83,000 SF

GLA (office) ± 1,850 SF Lot Size ± 4.45 Acres ( 193,842 SF)

Type of Ownership Fee Simple

Topography Generally Level

Docks 10 (6 with levelers)

Grade Doors 2

Delivery Door 1

Clear Height 22’

Roof Duro - Last (2004,2011,2014)

the offering Parcel MAp

Lease Summary

Tenant Responsibilities

Gas

Electric

Electrical/Plumbing/HVAC management and repairs under $500

Dock door and leveler maintenance

Pest Control

Janitorial Services

Communications - security, computers, fax et al

Snow removal

Annual sprinker inspections

Landlord Responsibilities

Roof & StructureRE TaxesProperty InsuranceLandscaping

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Subject Property

Dow’s Chemical Production Campus

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Subject Property

Midland Town Center Storage

Dow Chemical Credit Union

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Dow ChemicalCredit Union

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MIDLAND, MI DEMOGRAPHICSLocated in Midland County, Midland sits in central Michigan. It is part of the Great Lakes Bay Region and has beautiful sights of natural Michigan. The town has received recognition as a great place to raise a family, find a promising career, excellent education, and much more.

In 2016, Midland was named the first community in Michigan as an accredited Safe Community by the National Safety Council’s Safe Communities America Program. The community has an extremely low crime and unemployment rate. The most common industries in the area are in manufacturing and retail trade. Popular occupations are in management and sales.

POPULATION 1 Mile 3 Mile 5 Mile

2023 Projection 4,084 31,130 50,604

2018 Estimate 4,141 31,321 50,518

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2023 Projection 2,203 13,588 21,318

2018 Estimate 2,213 13,563 21,115

INCOME 1 Mile 3 Mile 5 Mile

2018 Est. Average Household Income

$45,044 $83,847 $89,997

A R E AO V E R V I E W

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Dow Chemical located at 401 Barth St, Midland, MI 48640 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TA T E M E N T

exclusively listed by

4 0 1 B A R T H S T | M I D L A N D , M I

™

KYLE MATTHEWSBROKER OF RECORDLIC # 6505399495 (MI )

BROKER OF RECORD

TYLER GROTHAssociate

CALVIN SHORTSVP & Senior Director

Calvin.Short@matthews.comDIR (949) 432-4506MOB (310) 567-3525LIC # 01927216 (CA)

Tyler.Groth@matthews.comDIR (310) 844-9370MOB (269) 326-2493LIC # 6501390929 (MI )

Dow Chemical (TENANT)